Yesterday’s Report

No surprises that EUR/USD lost more ground on Friday, given the pullback that was delivered on Thursday and the break of our Long Term Support #1. Price Action (PA) failed to sustain momentum below 1.2800 however and we begin the week with PA pulling back towards another retest of our Trendline.

Technical Analysis

The Stock Market cliche “ sell in May & go away” seems befitting USD cross currencies and EUR/USD is certainly following that adage. I see no sign of that trend reversing and our Pivots agree, maintaining strong Bearish formation. It’s tough to miss a Bearish continuation Flag #2 forming on smaller time frames and not unreasonable to expect some action at the confluence of this, with our week old Resistance Trendline #3. In the Bulls corner, is an emerging Ascending Triangle #4. Tough to enter Long though but I will watch the top side of this.

The Day Ahead

PA is currently re-testing an Intraday Support Trendline #5 from Friday which may provide another confluence factor so this is the day’s #1 Hotspot – I will look for Short entries right there.